Wed Sep 25 07:00:01 UTC 2024: ## Sanctions loopholes allow goods to flow to Russia through Central Asia
**BISHKEK, Kyrgyzstan -** Since Russia’s invasion of Ukraine, the Central Asian country of Kyrgyzstan has experienced a surge in imported goods, raising concerns about the effectiveness of international sanctions. Despite sweeping sanctions imposed by the European Union, the United States, and other countries, illicit trade routes are being utilized to funnel sanctioned goods into Russia through countries like Kyrgyzstan.
Experts have identified a sharp increase in exports from Eastern European countries like Serbia, Romania, Bulgaria, and Hungary to Kyrgyzstan, particularly after the invasion began in February 2022. While Kyrgyzstan’s official import data shows a significant increase, experts believe a substantial portion of these goods are re-exported to Russia.
“We’ve flagged a massive spike in exports from Serbia to Kyrgyzstan,” wrote Robin Brooks, a senior fellow at the Brookings Institution. “None of this stuff obviously goes to Kyrgyzstan. It goes to Russia.”
Data released by the Brookings Institution highlights this trend, with notable increases in export values from Germany, Italy, Austria, and Poland to Kyrgyzstan. Germany’s exports, for example, soared from less than $10 million in March 2022 to around $80 million in July 2023.
While the EU has increased efforts to crack down on these loopholes, including diplomatic engagement with Central Asian countries and enhanced export control measures, concerns remain about the effectiveness of these efforts.
“Are we seriously to believe that nothing can be done to stop the shameful flood of transshipments to Russia via Central Asia?” questioned Brooks.
Maria Shagina, a senior research fellow at the International Institute for Strategic Studies, suggests that the EU may need to take more aggressive measures, such as pressuring financial institutions involved in export control violations.
The IMF reported that Kyrgyzstan’s trade dynamics have significantly shifted since the invasion, with imports surging by 76% and exports falling by 18%. Russia and China now account for a large share of Kyrgyzstan’s trade, with Russia’s share of exports rising from 14.3% to 48%.
This situation highlights the challenges in enforcing sanctions effectively and raises concerns about the commitment of the international community to holding Russia accountable for its actions.
First Piper 